Report: Palm Springs housing market cooled in July amid overall Coachella Valley slowdown
The authors of a monthly housing report write that home prices have remained stable over the last twelve months and suggest that potential interest rate cuts could reinvigorate the market.
The Palm Springs housing market is experiencing a significant cooling trend, with declining prices and slower sales as part of a broader slowdown in the Coachella Valley region.
According to the July 2024 Desert Housing Report, the median price of detached homes in Palm Springs has dropped 10% compared to last year, reaching $1,157,731. Attached homes have seen a 5.4% decrease, with the median price now at $430,456.
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Sales volume in Palm Springs has also declined, with an average of 120 units sold per month, down from 145 units in the same period last year. This decrease is reflected in the total dollar sales, which have fallen by about 20% year-over-year.
The inventory of homes in Palm Springs has increased to 548 units, up from 421 units last year. This rise in inventory has led to a “months of sales” ratio of 4.6 months, indicating a balanced market.
Homes in the city are taking longer to sell, with the median time on market increasing to 49 days from 42 days last year. Buyers are also benefiting from larger discounts, with detached homes selling at an average discount of 3%, up from 2% the previous year.
The trends in Palm Springs mirror the broader Coachella Valley market, where the median price of detached homes has stagnated at $669,000, only $4,000 higher than last year. The three-month average sales across the Valley have decreased to 642 units per month, down from 712 units a year ago.
“Sales this month are 27.2% below normal and have been declining over the last four months,” the report states. “Hopefully, the Federal Reserve will drop interest rates soon, which would stimulate buyers.”
“Even though inventory is still relatively low, the low sales numbers keep supply and demand in balance,” the report notes.
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